Q Gunnebo Industrier Holding AB Unaudited consolidated financial report

Transcription

1 2017 Q Unaudited first half year and second quarter results Gunnebo Industrier Holding AB Unaudited consolidated financial report

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3 Key Highlights Strong growth during the first half of the year with positive customer sentiment in a majority of the key markets 11,1% growth in order intake January to June Net sales increased 7,6% to MSEK 453 (421) in January to June Operating profit increased 13,5% to MSEK 38 (33) in January to June A senior secured bond issue of MSEK 600 was successfully placed in May 2017 GBO Fastening Systems AB divested in January All reported financials are in accordance with IFRS 5 (1) Q Order intake (MSEK): Net sales (MSEK): EBITDA (MSEK): Operating profit (MSEK): Operating margin: 215 (198) 230 (217) 23 (23) 15 (15) 6,6% (6,9%) (1): Non-currents assets held for sale and discontinued operations. 3

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5 Markets and order intake January to June 2017 Group order intake increased by 11,1% to 450 MSEK (405). Components, chain and shackles The positive order intake trend continued across many markets. The order intake increased by 19,3% to MSEK 372 (312). The market conditions in a majority of the key geographies developed favorably during the period. The Swedish market continued to improve with increasing demand from several industry segments. Order intake from the Fish farming industry/aquaculture industry segment experienced a healthy growth, particularly in Norway. The global market demand from the Oil & Gas industry has stabilized on a relatively low level, but new business within the Oil & Gas industry contributed to growth in order intake. The demand from the US construction and general industry was strong during the period. The positive market development combined with implementation of multiple growth activities have resulted in strong growth in order intake in the US. Blocks and sheaves Sales of Crane blocks to mobile crane manufacturers and sheaves to the Oil & Gas industry continued to suffer from weak underlying demand. The increasing rig count (US land-based) has not yet improved the demand for sheaves. The order intake was MSEK 78 (93). Income Statement January to June 2017 Net sales increased 7,6% to MSEK 453 (421) following the strong order intake during the period. Net sales within components, chain and shackles 1 increased 16,1% to MSEK 381 (328). Net sales within blocks and sheaves decreased by 22,4% to MSEK 72 (93). Gross profit increased to MSEK 163 (152). Higher revenue contributed positively, but the increase in steel prices had a negative effect on the gross profit margin compared to the previous year. The operating profit increased 13,5% to MSEK 38 (33) corresponding to a margin of 8,3% (7,9%). The operating profit was negatively affected by exchange rate differences on operating assets/liabilities of MSEK -3,9 (2,6) and by items affecting comparability of MSEK -4,0 (-6,8). Net financial items were MSEK -78 (-45). Net financial items were negatively affected by the write-off of the arrangement fee of MSEK -15 connected to the bank loan that was repaid in May. In addition, net financial items was negatively affected by MSEK -19 (-2,5) of currency effects on financial items arising from the groups intra loan structure and by MSEK -17 (-15) non- 1 Components, chain and shackles together with blocks and sheaves are reported as one business segment in the annual report for 2016 in note 1 (referred to as Lifting/Blocks ). No new business segments have yet been defined following the divestment of GBO Fastening Systems AB in January

6 cash interest expense on the shareholder loans. Profit after financial items was MSEK -41 (-12). Net profit for the period was MSEK -45 (-2,1). April to June 2017 Net sales increased 5,9% to MSEK 230 (217) following the strong order intake during the period. Net sales within components, chain and shackles increased 14,8% to MSEK 195 (170). Net sales within blocks and sheaves decreased by 25,6% to MSEK 36 (48). Gross profit increased to MSEK 79 (78). Higher revenue contributed positively, but the increase in steel prices had a negative effect on the gross profit margin compared to the previous year. The operating profit was in line with the previous year at MSEK 15 (15), corresponding to a margin of 6,6% (6,9%). The operating profit was negatively affected by exchange rate differences on operating assets and liabilities of MSEK -3,4 (3,0) and by items affecting comparability of MSEK - 1,9 (-4,1). Net financial items were MSEK -49 (-6,5). Net financial items were negatively affected by the write-off of the arrangement fee of MSEK -15 connected to the bank loan that was repaid in May. In addition, net financial items was negatively affected by MSEK -13 (14) of currency effects on financial items arising from the groups intra loan structure and by MSEK -8,4 (-7,3) noncash interest expense on the shareholder loans. Profit after financial items was MSEK -34 (8,4). Net profit for the period was MSEK -35 (5,9). Group consolidated financials Summary Jan-Jun Jan-Jun Full year Net sales MSEK Gross profit MSEK EBITDA MSEK EBITDA-margin % 11,7% 11,9% 10,4% Operating profit MSEK Operating profit margin % 8,3% 7,9% 6,2% Equity to assets ratio % 28% 42% 27% Number of full time employees, end of period #

7 Balance sheet, cash flow and funding January to June 2017 A senior secured bond issue of MSEK 600 at STIBOR 3 months + 500bps was successfully placed in the Nordic bond market in May The term for the bond is three years with the possibility of a subsequent issue of MSEK 300 before maturity. Net proceeds from the bond issue were used to refinance existing debt and to finance general corporate purposes. An application will be made for the bonds to be listed on NASDAQ Stockholm. A revolving credit facility (RCF) of MSEK 60 was signed in connection with the bond issue. The terms and conditions for the bond allows for an RCF of maximum MSEK 100. Total liquid funds were MSEK 58 (0) 2 including MSEK 20 drawn from the RCF. The equity to total asset ratio was 28% (42%). Total equity was MSEK 440 (901). The divestment of GBO Fastening Systems AB had a negative impact on total equity. The shareholder loans were MSEK 242 (210). The interest on these loans is accrued as payment in kind, i.e. no effect on cash flow until they fall due. The cash flow from operating activities before changes in working capital was MSEK 30 (30). Investments in tangible assets were MSEK -4 (-5). No material investments in intangible assets were made in The total liquid assets in June 2016 was predominantly allocated to, the later divested, GBO Fastening Systems AB which was part of the Gunnebo Industries cash pool arrangement and is included in Assets classified as held for sale on the balance sheet according to IFRS 5. This means that the actual available total liquid assets in June 2016 were in fact higher than zero through the cash pool arrangement. 7

8 Notes: Employees The number of employees by the end of June 2017 was 495 (492). Risk factors Gunnebo Industries is exposed to several operational and financial risk factors including, but not limited to, commodity prices, property damage, IT, interest rates, exchange rates and financing availability. For further information please refer to the annual report for 2016 note 28 and 29. Subsequent events No major subsequent events have occurred after closing of June Seasonality Gunnebo Industries is not exposed to any material seasonality in its operations. Related party transactions The shareholder loan has terms based on arm s length principles. No other related transactions that significantly affect the Gunnebo Industries result or financial statements have been made during the period. No significant related party transactions have been done in the parent company apart from the intercompany interest charges. Accounting principles This interim report has been prepared in accordance with IAS 34, Interim financial reporting and the Swedish Annual Accounts Act. The financial statement of the parent company has been prepared in accordance with the Swedish Annual Accounts Act, chapter 9 and the Swedish Financial Reporting Board s standard RFR 2 Accounting for Legal Entities. The accounting policies adopted are consistent with those presented in the Annual Report of Financial calendar The report for July to September 2017 will be made available on Gunnebo Industries website on 30 November Review of this report This report has not been reviewed. KPIs and Alternative Performance Measures (APMs) We are using the following APMs. EBITDA: defined as operating profit before depreciation and before amortization. EBITDA margin: defined as EBITDA in relation to net sales. Operating profit margin: defined as operating profit in relation to net sales. Equity to assets ratio: defined as total equity in relation to total assets. We are using these APMs because we believe that they serve as proper indicators for Gunnebo Industries financial performance as well as financial strength. 8

9 The Board and the Group CEO confirm to the best of our knowledge that the consolidated set of financial statements for Gunnebo Industries as well as the financial statements for Gunnebo Industries parent company, for the period 1 January 2017 to 30 June 2017, has been prepared in accordance with applicable accounting standards, and that it gives a true and fair view of the group s operations, assets, liabilities, financial position and result for the period as well as a fair view of material risk facing the company. Stockholm, 31 August 2017 Jörgen Centerman Chairman Sebastian Ehrnrooth Board member Carl-Gustav Bergström Board member Fredrik Wiking Group CEO 9

10 Consolidated Income Statement, condensed Q2 Q2 Jan-Jun Jan-Jun Full year MSEK Net sales 230,2 217,4 453,0 421,0 795,8 Costs for goods sold -150,8-139,9-290,0-268,7-518,2 Gross profit 79,4 77,5 163,0 152,3 277,6 Selling and administrative expenses -59,2-62,3-117,7-116,2-222,4 Other operating income and expenses 1) -5,1-0,3-7,5-2,8-6,1 Operating profit 2) 15,1 14,9 37,8 33,3 49,1 Operating margin 6,6% 6,9% 8,3% 7,9% 6,2% Financial income and expences Currency effects on financial items -13,1 14,3-18,6-2,5 25,1 Interest expenses, shareholder loan -8,4-7,3-16,7-14,6-29,3 Other financial items, net -27,6-13,5-43,0-28,0-48,0 Profit/loss after financial items -34,0 8,4-40,5-11,8-3,1 Tax on profit/loss for the period 1,2 0,3-1,5 17,6 6,9 Profit/loss for the period on continued operations -32,8 8,7-42,0 5,8 3,8 Loss from discontinued operations -2,5-2,8-2,5-7,9-407,8 Profit/loss for the period -35,3 5,9-44,5-2,1-404,0 No non-controlling interest exist Adjusted profit/loss for the period 3) 5,6 5,8 12,3 29,7 21,5 1) Of w hich items affecting comparability: -1,9-4,1-4,0-6,8-13,5 2) Operating profit include: Depreciation -5,3-6,1-11,0-12,5-24,6 Amortization -2,2-2,2-4,3-4,5-8,8 3) "Adjusted profit/loss for the period" is defined as "Profit/loss for the period" before "Loss from discontinued operations", before "items affecting comparability", before "Interest expense on shareholder loan", before "Financial currency differences", and before the w rite-off of MSEK 15 of the arrangement fee connected to the bank loan that w as repaid in May. Further, no tax effect is assumed on these adjustments since the vast majority of them is accounted for in the Sw edish legal entities w here there are deferred tax assets that could be utilized to fully offset any incremental tax costs. Consolidated Comprehensive Income Statement, condensed Q2 Q2 Jan-Jun Jan-Jun Full year MSEK Profit/loss for the period -35,3 5,9-44,5-2,1-404,0 Items that may be reclassified to income statement 10,1-18,4 16,1-2,2-36,4 Items that will not be reclassified to income statement 0,0 0,0 0,0 0,0 3,1 Other comprehensive income for the period 10,1-18,4 16,1-2,2-33,3 Total comprehensive income for the period -25,2-12,5-28,4-4,3-437,3 10

11 Consolidated Balance Sheet, condensed 30 June 30 June Full year MSEK Assets Non-current assets Intangible fixed assets 880,6 889,0 884,8 Tangible fixed assets 137,3 153,0 148,0 Financial fixed assets 72,5 72,5 69,5 Total non-current assets 1 090, , ,3 Current assets Inventories 230,0 234,2 230,8 Current receivables 185,8 189,6 153,2 Liquid assets 57,7 0,0 51,0 Assets classified as held for sale - 619,9 227,8 Total current assets 473, ,7 662,8 Total assets 1 563, , ,1 Equity and liabilities Total equity 439,9 901,3 468,3 Non-current liabilities Shareholder loan 241,5 210,1 224,8 Other long-term liabilities 749,4 780,2 789,1 Total non-current liabilities 990,9 990, ,9 Current liabilities Other current liabilities 133,1 133,8 145,6 Liabilities directly associated with assets classified as held for sale - 132,8 137,3 Total current liabilities 133,1 266,6 282,9 Total equity and liabilities 1 563, , ,1 The group has no derivatives at June 30, Change in Equity, condensed 30 June 30 June Full year MSEK Equity has been changed during the period: At the start of the period 468,3 905,6 905,6 Other comprehensive income for the period 16,1-2,2-33,3 Profit/Loss for the period -44,5-2,1-404,0 Total comprehensive income for the period -28,4-4,3-437,3 At the end of the period 439,9 901,3 468,3 11

12 Cash Flow Analysis, condensed Q2 Q2 1) Jan-Jun Jan-Jun 1) Full year 1) MSEK Cash flow from operations Cash flow from operating activities before change in working capital 7,0 32,8 29,8 30,1 46,2 Total change in working capital -41,9 4,6-40,3-19,5 41,3 Cash flow from operations -34,9 37,4-10,5 10,6 87,5 Investments Net investments -2,9-3,2-4,3-4,9-11,1 Acquisition/Divestment of companies and operations 0,0 0,0 61,1 0,0 0,0 Cash flow from investments -2,9-3,2 56,8-4,9-11,1 Financing Changes in long-term receivables and liabilities -6,2-35,1-81,4-33,7-50,5 Dividends to shareholders 0,0 0,0 0,0 0,0 0,0 Cash flow from financing -6,2-35,1-81,4-33,7-50,5 Total cash flow -44,0-0,9-35,1-28,0 25,9 Liquid assets at beginning of the period 103,3 37,9 94,5 64,6 64,6 Translation differences on liquid assets -1,6 1,6-1,7 2,0 4,0 Liquid assets at the end of the period 57,7 38,6 57,7 38,6 94,5 Operating Cash Flow Q2 Q2 1) Jan-Jun Jan-Jun 1) Full year 1) MSEK Cash flow from operating activities -34,9 37,4-10,5 10,6 87,5 Reversal of tax paid and net financial items affecting cash flow 15,0 10,7 22,8 23,4 39,8 Net investments -2,9-3,2-4,3-4,9-11,1 Operating cash flow -22,8 44,9 8,0 29,1 116,2 1) Please note that all periods in 2016 includes GBO Fastening Systems AB in accordance w ith IFRS 5. 12

13 Parent Company Income Statement, condensed Q2 Q2 Jan-Jun Jan-Jun Full year MSEK Net sales 0,0 0,0 0,0 0,0 0,0 Operating profit/loss -0,1-0,8-0,1-1,2-0,1 Profit/loss after financial items -42,8 5,4-51,7-8,3 58,0 Pre-tax profit/loss -42,8 5,4-51,7-8,3 58,0 Profit/loss for the year -42,8 5,4-51,7-1,8 42,0 Parent Company Balance Sheet, condensed 30 June 30 June Full year MSEK Non-current assets 2 432, , ,4 Current assets 22,2 3,6 107,2 Total assets 2 455, , ,6 Equity 1 108, , ,3 Non-current liabilities and provisions 844,3 766,9 438,7 Current liabilities 502,1 207,3 489,6 Total equity and liabilities 2 455, , ,6 13

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